This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission claims that San Diego lawyer Luis Carrillo is ignoring charges against him that stem from a boiler room run from the Vancouver suburb of White Rock. The regulator has asked that a New York judge hold Mr. Carrillo in default for failing to defend the case. The default order, if granted, could be serious for Mr. Carrillo, as it would clear the way for the SEC to seek fines, bans and other sanctions without a trial.

The SEC claims that Mr. Carrillo was a central participant in the $11-million pump-and-dump of two pink sheets listings, Pacific Blue Energy Corp. and Tradeshow Marketing Ltd. (All figures are in U.S. dollars.) A group of Canadians touted the companies with bogus claims about infomercials and solar power, the regulator said. Both stocks went above $1 before falling to under a penny.

Mr. Carrillo and another partner at his law firm, Wade Huettel, are defendants because of the legal work that they did for others. According to the SEC, they facilitated the scheme by drafting false and misleading legal opinions. The regulator claimed that those opinions allowed the sale of millions of shares. Mr. Carrillo and Mr. Huettel also designed a share structure that concealed a vast number of shares that others owned, the SEC said.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS